Uncategorized
Buhari’s Big Dilemma: Petrol Subsidy Or Price Hike
Nigeria is currently facing a fuel price crisis, and President Muhammadu Buhari is clearly in a dilemma about how to tackle it. He is torn between two choices: reintroduce petrol subsidy or allow the pump price to rise.
When Obinna Ajayi-Ciroma (not real name) stumbled on the news on Friday morning that petrol price had been increased to N212 per litre, he immediately decided to dash into a nearby market.
“I had to run to the market to buy some foodstuffs because I know the increase in petrol price will push up food prices,” the 30-something-year-old bachelor, who has been working so hard to eke out a living, told me over the phone.
Ajayi-Ciroma said the significant rise in food prices in the past year partly due to petrol price increases had taken a huge toll on his disposable income.
From 13.86 per cent at the start of 2020, food inflation hit a record 20.57 per cent in January this year – its highest level since the National Bureau of Statistics began the Consumer Price Index series. In May 2015, when Buhari came to power, food inflation stood at 9.78 per cent, the NBS data showed.
The Lagos Chamber of Commerce and Industry warned in February that rising food prices would see most low- and middle-income households spend more on food commodities, with little amount to save and/or invest.
“Persistent rise in food prices, if unresolved, would worsen Nigeria’s poverty situation, thereby pushing more Nigerians below the poverty line,” it said.
The news of petrol price hike on Friday came on the heels of the release of a new pricing template by the Petroleum Products Pricing Regulatory Agency. It sparked a furore. Fury flowed like a fountain.
The public outrage was so palpable that #FuelPriceHike instantly trended on Twitter. The news triggered panic buying of petrol, and fuel queues resurfaced in some parts of the country. Motorists and other petrol users rushed to filling stations to buy the product before price adjustments by the marketers.
The PPPRA template showed that the pump price of Premium Motor Spirit (petrol) was expected to range from N209.61 and N212.61 per litre this month, up from N162-165 per litre.
Following the widespread outcry, the Nigerian National Petroleum Corporation tweeted that morning, “NNPC insists no increase in ex-depot price of PMS in March.”
The PPPRA later deleted the template from its website and issued a statement, saying the guiding prices it released did not translate to an increase in the pump price.
“Even though market fundamentals for PMS in the past few months indicated upward price trends, the pump price has remained the same and we are currently monitoring the situation across retail outlets nationwide,” it said, adding that consultations with relevant stakeholders were ongoing.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, had on February 9 said Nigerians should prepare for the pain associated with the increase in crude oil price.
I think petrol price remains a highly sensitive topic in the country not because Nigerians love cheap petrol but because successive governments have failed miserably to improve the lot of most Nigerians; in fact, many have been impoverished in recent years amid worsening economic woes.
In May 2016, the Buhari government increased petrol price from N86 per litre to N135-145 and put an end to fuel subsidy. That action was not met with much opposition because the President, who was just one year in office, was enjoying massive goodwill. What’s more, Nigerians were desperately in need of a solution to the months-long severe fuel scarcity that faced the country at the time.
While that move helped to resolve the lingering fuel scarcity and ended petrol subsidy to private marketers, it failed to encourage the marketers to resume petrol importation. Foreign exchange scarcity and rising oil prices were said to have made them steer clear of importing the product.
The NNPC gradually became the major importer, and then the only entity supplying the product into the country. But with the continued rise in oil prices amid government’s unwillingness to further increase petrol price, subsidy reemerged. The NNPC, which was bearing the cost of subsidising petrol on behalf of the government, dubbed it “under-recovery”.
Many stakeholders continued to make a case for total removal of subsidy and full deregulation of petrol price to curb the corruption associated with the subsidy regime, tackle the smuggling of cheaper petrol from Nigeria to neighbouring countries, encourage the badly needed investment in refining and transform the dwindling fortunes of the downstream petroleum sector.
In March last year, the Buhari government decided to bite the bullet and eliminate the subsidy. It was easy to do that because the COVID-19-induced oil price collapse had significantly reduced the landing cost of petrol. The government reduced petrol price to N125 per litre as the oil crash had pushed the expected open market price of imported petrol below the official pump price of N145 per litre.
Apparently oblivious of what could follow that surprise price reduction, many Nigerians cheered the government. But that price cut is now seen by many as a poisoned chalice.
To my mind, the government itself did not envisage that the price of oil would rebound as fast as it has done in recent months. After slight further reductions in April and June, petrol price rose four times in the second half of the year – from N121.50-123.50 in June to N140.80-143.80 in July, N148-150 in August, N158-162 in September and N163-N168 in November.
From $23.98 per barrel on March 19 when the government announced the price reduction, the price of the global oil benchmark, Brent crude, rose to $46.84 at the end of November. It increased further in December and closed the year at $51.22.
Contrary to marketers’ expectations, the Federal Government announced a N5 reduction effective Dec. 14 after a meeting with officials of labour unions. The development ran counter to the government’s pronouncements and policy on deregulation.
In September, Sylva had said the government could no longer continue to subsidise petrol, and had stepped back in fixing the price of the product as market forces would determine it.
The price of oil continued its upward trend this year, rising above $70 per barrel on Mar. 8 for the first time in over 14 months. But petrol price has not been adjusted to reflect the upturn in oil prices.
Some have argued that rather than allowing petrol price to go up, the government should use part of the increased oil export revenue brought about by the significant rise in oil prices to subsidise petrol.
But the commitments the government made to the International Monetary Fund and the World Bank while seeking loans last year make a return to the subsidy era very unlikely.
Before the approval by the IMF of the country’s request for emergency financial assistance of $3.4bn, the government had said in a letter of intent to the fund that the recent introduction and implementation of an automatic fuel price formula “will ensure fuel subsidies, which we have eliminated, do not reemerge.”
It was reported in August that the World Bank was unlikely to approve a much-needed $1.5bn for Nigeria that month as planned because of concerns over desired reforms, with fuel subsidies said to have been discussed. While announcing the approval of loan on Dec. 15, the bank said the country had to make “tangible progress on key challenges and pursue some bold reforms” to realise its long-term potential.
Buhari is, no doubt, stuck between the devil and the deep blue sea. Will he push ahead with the deregulation of the downstream sector and allow market forces determine petrol price? What would he do to make long-suffering Nigerians agree to stomach another hike in petrol price?
●’Femi Asu, a business and economic journalist
Uncategorized
Shocking departure of Rafatu Salami: Thunderbolt on journalism
By Dimeji Kayode-Adedeji
I still find it difficult to believe sudden demise of Rafatu Salami. I first came in physical contact with her when I joined International Press Institute (IPI), Nigeria. Before then, we had never met, but only knew our names while practicing journalism
That our maiden meeting was at the 3-day conference of International Press Conference (IPI), in October 2024, held in Government Reservation Area (GRA), Ikeja axis of Lagos State and I can attest to the proactive nature of Rafat, which I admired, as she was up and doing to ensure a successful outing. That skills coupled with her accommodating nature made us to be professionally close
In similar vein, our second encounter was during a training organized for senior journalists in Nigeria by the Nestle Nigeria Plc held between September 11 to 13, 2024. Interestingly, myself and Rafat represented International Press Institute (IPI) and this also provided opportunity for two of us to be more united in journalism.
I recalled vividly that she exhibited her cerebral skills at the training session with robust contributions, and also added glamour to the programme, with her no dull moment nature, which also caught attention of all participants.
I can attest to the accommodating nature of Rafat, and it will be difficult for all other participants that we knew each other less than two years, because her accommodating nature was superb. She always relates with me as if we have known each other for decades.
The known outspoken and vibrant late female journalist is somebody I cherished because of her humility, proactive nature and hardwork among other qualities, particularly in the media industry. She doesn’t believe in failure, but always optimistic that there should be positive results for whatever project she shows interest
In October 25, 2024 she sent me a message about a proposed conference being organized by an establishment to take place in Abeokuta, and asked me to help secure venue and attend to other logistics, which I swiftly responded to, as a way to also appreciate her, because if you handover an assignment to her, Rafatu would also ensure that she provide good results
In the course of our discussions, I even encouraged her to come and join Nigerian Guild of Editors (NGE), which I am also a member, because of her competence in the media, and in response she said she would join when she attain the position of Deputy Director in her office, explaining that she was still an Assistant Director.
She expressed optimism that she would soon get her promotion which will pave way for her to join the Guild.
However, on November 3, 2024 when I didn’t hear from her about the proposed conference, I was curious to know cause of delay, but sent me a message that she had been experiencing excruciating pain on her legs and could not walk or sit, but making attempt to walk round her room.
I felt for her, and had to recommend a pain relief lotion which I sent the image to her so she can buy and start applying on the legs, I was thinking it was just a minor pain at that time. She appreciated my concern, and replied me she would source for it.
Below is first round of our WhatsApp contact chat
[09/12, 11:00 pm] Ijesakinsman: Uv done ur conference in Abeokuta?
[09/12, 11:01 pm] Rafatu IPI: No. I’ve been incapacitated for 8 weeks now
[09/12, 11:02 pm] Ijesakinsman: What went wrong
[09/12, 11:02 pm] Rafatu IPI: Had excruciating pain on my right leg, could not walk or sit
[09/12, 11:03 pm] Rafatu IPI: But I have begun walking around my room now
[09/12, 11:03 pm] Rafatu IPI: At least I go to toilet without support
[09/12, 11:05 pm] Ijesakinsman: God perfect ur healing
[09/12, 11:05 pm] Rafatu IPI: Amen
But I became shock on December 12, 2024 when I her saw on wheel chair during the conference of International Press Institute (IPI) held in Abuja. Honestly, I was dazed with that picture posted on the Institute membership platform.
I could not resist to keep mute over the development and had to send text to her later in the evening of the event, telling her that I never, knew the medical situation was so heartbreaking, and in response said she cried for hours before she could accept to use the wheel chair to attend the event
This worrisome development motivated me for regular and daily contact with her both on chat and video calls, to know how she’s fairing everyday. This our regular conversation was between December 9 to 17, 2024, as produced below, not until early morning of Friday, just about 48 hours of our chat and video discussions with her, I got the sad news.
Yet I still didn’t believe, because I still spoke with her few days. My curiosity made me to put a call across to her phone at about 7am, that was when it dawned on me, when receiver of the phone call who identified himself as a brother-in-law confirmed the bad news which shattered the day for me and the journalism family.
One thing that is clear is that we cannot query God, who knows everything. Rafat has done her bit, came and gone, but her good work, particularly in the media industry will forever remain a reference point in the nobble profession. No doubt, her sudden exit will be felt in the journalism world, which was her love profession. God rest her soul.
As I earlier stated above, second version of our conversation between December 9 till Tuesday December 17 before her final exit from this sinful world is produced below
[12/12, 1:32 pm] Ijesakinsman: I never knew is that serious that ur on wheel chair
[12/12, 1:35 pm] Rafatu IPI: Yeah
[12/12, 10:23 pm] Ijesakinsman: God will perfect the healing
[12/12, 10:50 pm] Rafatu IPI: Amen
[12/12, 11:02 pm] Ijesakinsman: Honestly, I was shocked when I saw it.
[12/12, 11:03 pm] Rafatu IPI: I cried for a whole day before agreeing to use it
[12/12, 11:06 pm] Ijesakinsman: U don’t need to cry, just be optimistic. I can understand cos I know how proactive ur, and to be confine on wheel chair can be difficult experience. I know God will heal you
[14/12, 11:53 pm] Rafatu IPI: Getting better by the day
[14/12, 11:54 pm] Ijesakinsman: I already have you in my prayer point
[14/12, 11:54 pm] Rafatu IPI: Amen and amen
[14/12, 11:56 pm] Ijesakinsman: Honestly, I was shocked when I saw that ur pix at conference. But am optimistic that you will get over it
[14/12, 11:56 pm] Rafatu IPI: By the special grace of God, the worst is already behind us
[14/12, 11:57 pm] Ijesakinsman: God grace
[15/12, 7:20 pm] Ijesakinsman: God grace and very soon you will rise up to your feet and be more agile and proactive
[15/12, 7:30 pm] Rafatu IPI: Amen and amen
[16/12, 11:49 pm] Ijesakinsman: How are u fairing now
[16/12, 11:49 pm] Rafatu IPI: Much better. Thank you sir
[16/12, 11:50 pm] Ijesakinsman: You will walk on ur own
[17/12, 1:11 am] Rafatu IPI: Amen
Dimeji Kayode-Adedeji is founder Penpushing Media and member International Press Institute(IPI). He wrote this piece from Abeokuta, Ogun State, Headquarters of the Penpushing Media
Uncategorized
FG Pledges Enhanced Security for Southeast Region
… Adequate security is vital for business prosperity – Badaru
The Honourable Minister of Defence, H.E. Mohammed Badaru Abubakar, has assured the people of the South-East of enhanced security measures, emphasizing that a secure environment is crucial for business growth and prosperity.
During his operational visit to Enugu in the South-East, the Minister addressed officers and personnel of the 82 Division/Joint task force south East Operation Udo ka under the General officer commanding, Major-General H.T Dada .He appreciated their performance while urging them to intensify their efforts in combating insecurity in the region. He also engaged with key stakeholders, including heads of security agencies, traditional rulers, students, and other community leaders, to discuss collaborative strategies for addressing the current security challenges. Other military platforms visited by the Minister included the Nigerian Airforce base Emene, Enugu.
“President Tinubu has directed me to engage with you all to find sustainable solutions to insecurity. Without security, there can be no peace or development,” Badaru stated. He acknowledged the entrepreneurial spirit of the South-East populace, asserting that security and peace are essential for businesses to thrive. “We seek your candid suggestions and information on how we can practically enhance security and foster lasting peace in this region,” he added.
The Minister reaffirmed President Bola Tinubu’s commitment to eradicating all forms of insecurity in the South-East . He elucidated on the progress made by the Tinubu administration over the past year in combating insecurity across the nation, particularly in these region.
“There is a renewed determination to intensify our efforts against all forms of insecurity under President Tinubu’s leadership,” he declared.
In his remarks, Major General Hassan Dada, General Officer Commanding (GOC) 82 Division/ JointTask south East Operation Udo ka, announced that the Army is implementing robust strategies to ensure a safe and secure environment for the upcoming festive season. “Through the Joint Security Task Force in the South-East, code-named ‘Operation UDO KA’, we aim to create a secure atmosphere that facilitates the usual mass return for Christmas,” he stated.
Additionally, retired Major General John Nwoga emphasized the role of social media in exacerbating insecurity, noting that the circulation of old videos depicting criminal activities contributes to fear and panic within communities. “It is imperative for our people to collectively address the negative impact of misleading information and fake news proliferated through social media,” Nwoga urged.
Furthermore, the Minister visited Imo State in continuation of his operational tour of southEast on Friday 22nd November 2024. He addressed the troops at the FOB okigwe, 211 Quick Response Group, Nigerian Airforce owerri and Naval Base Oguta in Imo State. He expressed President Bola Ahmed Tinubu GCFR message to them and that they should improve on their successes.
The Honourable Minister also paid a courtesy visit to Governor Hope Uzodimma of imo state to extend his gratitude to the Governor for all his support to the 82 Division of the Nigerian Army/ Joint Task force south East, Operation udo ka. “All the officers and men appreciates you.”
The Ministry of Defence remains committed to fostering a secure and peaceful environment conducive to business and community development in the South-East. We are determined to end insecurity in Nigeria.
Uncategorized
Rented Crowed, APC AKIDA Leader with Zamfara State Govt. Buses Embark on Campaign of Calumny at DSS Office
Godiya Hamza, a Media Analyst, writes from Abuja
The orchestrated campaign of calumny against the Honourable Minister of State for Defence H.E Dr Bello Muhammad Matawalle MON by a group of street orchins recruited by the leader of APC AKIDA Tijjani Ramallan is very preposterous and indecent.
This is politics too far, Ramadan has been attacking President Bola Ahmed Tinubu GCFR right from campaign days. He never supported or participated in APC activities, he has been jealous of Matawalle loyalty to our President.
Tijjani Ramallan has been sponsoring Banditry and romancing with criminals.
The leader of the APC AKIDA Tijjani Ramallan is being sponsored by the state government to attack the person of Dr Matawalle. It is expected that by now the DSS should have arrested him . He has found himself as a willing tool to be manipulated by Governor Dauda Lawal in attacking Dr Matawalle.
The earlier smear campaign embarked by zamfara state government which was stopped by a court order has forced them to shift to the use of APC AKIDA to carry out their mischief.
What zamfara people need is good governance and not wasting the state resources in trying to pull Matawalle down.
Pull him down syndrome pays no body.
PAFON 2.0: Experts Highlight Ingredients for Accelerated Financial Inclusion in Nigeria
Emulate Christ’s virtues, Glo urges Christians at Easter
“Jesus + Nothing Worship” Leaves Lasting Impact, Amplifying the Message of Christ’s Sacrifice and Resurrection
LASG Acquires New Outboard Engines For Optimum Boat Performance
Elon Musk builds Hotel in Mars, Sets to launch soon at $5million per night – Photos
We Do Not Accept Refugee Application Directly From People – Canadian Govt.
-
Spotlight3 days ago“Jesus + Nothing Worship” Leaves Lasting Impact, Amplifying the Message of Christ’s Sacrifice and Resurrection
-
Finance2 days ago
PAFON 2.0: Experts Highlight Ingredients for Accelerated Financial Inclusion in Nigeria
-
News3 days ago
Emulate Christ’s virtues, Glo urges Christians at Easter
